Important Changes
The following topics highlight changes made to the Long Service Leave (Portable Schemes) Act 2009 that came into effect from 01 January 2020.
Late Submission of Quarterly Returns
An infringement notice arrangement is being introduced for employers who fail to submit a quarterly return within 3 months after the end of the quarter. The infringement notice will replace the 3rd late submission fee previously charged. In addition, the value of the 1st and 2nd late submission fees have also changed.
The table below summarises the changes to the penalties applied for late submission.
| Penalty | Applied at | Previous value | New value |
|---|---|---|---|
| 1st late submission fee | 1 month after the end of the quarter | $100 | $200 |
| 2nd late submission fee | 2 months after the end of the quarter | $100 | $200 |
| 3rd late submission fee | 3 months after end of the quarter | $100 | N/A |
| Infringement notice | 3 months after end of the quarter | N/A | $640 for individuals
$3,200 for corporations |
To assist employers in transitioning to the new arrangements, the Authority will NOT be issuing infringement notices for the Oct-Dec quarter, which is due by 31st January 2020. However, the new values for the late submission fees will apply.
Late Payment of Quarterly Returns
The Authority will no longer apply late payment fees for returns paid after the due date. Instead, the Authority will start charging interest on any outstanding levy amount.
The interest rate to be used is currently being determined and the Authority will send further information once the interest rate is finalised.
The Authority will start applying interest on outstanding levies payable for the Jan-Mar 2020 quarter onwards, noting that the Jan-Mar quarter payment is due on the 30th April 2020. The Authority will not retrospectively charge interest on unpaid levies from previous quarters.
The Authority urges any employer who may be experiencing difficulties in either submitting or paying their quarterly return to contact the Authority before the due date for each quarter to discuss what options are available to avoid incurring penalties.
Backdating Employee Service
The Authority is no longer limited to backdating unrecorded employee service to within 4 years of the employee becoming a registered worker. Any period of unrecorded service can now be applied to an employee’s record with the Authority where a return, which includes details of the unrecorded service, is submitted and paid by the employer.
Phoenix Arrangements
A provision has been included in the Act that allows the Authority to pursue directors of a company for any unpaid levy amounts where illegal phoenix activity is identified.
Record Keeping
Employers must now keep records related to their employees for a minimum of 7 years.
Enforcement Powers
In keeping up with current times, inspectors appointed under the Act can now request and receive information electronically, without needing to be physically present at an employer’s site.
Community Sector Industry
A minor technical amendment was introduced to clarify the definition of community sector industry. This amendment is for clarification purposes and does not change the nature of employers covered within the community sector industry.
The amendment clarifies that education and care services means an approved education and care service under the Education and Care Services National Law (ACT).
If you require further information on any of the matters outlined above, please contact the Authority at enquiry@acteave.act.gov.au or call us on 6247 3900.